I see this failing, i just don't get why they would propose such a thing.
Certain people in office have, in the past, said that the NWS and NOAA are getting a free ride and creating unfair competition against for-profit weather forecasters. Another reason I can suspect for this is because it would cost less to run only a small handful of larger offices than it does to run a lot of smaller offices.
That said, they obviously don't realize all the work that goes into forecasting the weather, thus the necessity of having much more local offices.